What is the principal-agent problem as applied to corporations?
What will be an ideal response?
The principals are the owners of the corporation who want to see their profits maximized. The agents are the hired managers of the corporations who might serve their own goals instead. The principal-agent problem is to devise ways to make managers (the agents) act in the best interest of the owners (the principals).
Economics
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When two variables have a negative correlation and the x-variable decreases,
a. the y-variable increases. b. the y-variable decreases. c. the y-variable stays the same. d. the x-variable can never be positive.
Economics
The price that represents the shutdown point for a perfectly competitive firm corresponds to the _____.?
Fill in the blank(s) with the appropriate word(s)
Economics